Increasing the flexibility of First Home Saver Accounts - public submissions on proposed changes

Submissions supportive of proposed budget changes, but say greater flexibility required. 

Public submissions received by Treasury on increasing the flexibility of First Home Saver Accounts are universally supportive of the rule changes proposed in the 2010 budget, but are encouraging the Government to take greater steps.

Leading industry bodies are calling for even greater simplification to address poor take up, with strong appeals to reduce or remove the four year rule.

“While the ABA supports legislative amendments that improve flexibility, we believe further legislative changes, including the removal of the 4 year qualifying rule, is needed to increase the flexibility, simplicity and popularity of FHSAs” said the Australian Bankers Association.

Abacus, the industry body for credit unions, mutual building and friendly societies said “the four-year ‘lock-up’ requirement is too long and is the single most important disincentive for savers. Abacus recommends that the Government should remove or reduce the period of time...”

While the AIST representing the not-for-profit superannuation sector suggested “...inflexibility of FHSAs is a key reason for their poor uptake to date” and “encourages the Government to do more to increase the flexibility”.

Read the submissions here